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ARTICLE · 18 JULY 2019

Avoiding Independent Contractor Liability In M&A

As a result, independent contractors are not afforded employment law protections.

CanadaCorporate/Commercial Law

The distinction between employees and independent contractors is significant as it pertains to workers' legal entitlements. Employees have an exclusive working relationship with an employer, which engages rights and obligations under applicable employment legislation and the common law. By contrast, independent contractor agreements are entered into by legal and contractual equals. As a result, independent contractors are not afforded employment law protections.

The misclassification of employees as independent contractors continues to attract considerable legal action and media attention. Recently, Ontario has seen a rise in class action lawsuits involving claimants alleging to have been misclassified by their purported employers. If found to have misclassified employees, these companies could face claims for unpaid Employment Insurance and Canada Pension Plan contributions, wages and benefits, as well as various categories of damages. Canadian companies would be

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